As world leaders scramble to limit the spread of COVID-19 and save millions of lives, we are increasingly hearing concerns regarding how social distancing and lockdown measures will impact the economy.
Governments and economic commentators fear a “stock market crash” and a “recession worse than 2009”, and are developing economic stimulus plans accordingly. But using GDP and stock market values as a barometer of economic health is misguided. The existing policy landscape is constrained by economic ideas and tools built for another time.
In this moment, our economic policies must be oriented towards meeting basic needs, promoting essential activities and facilitating a 'Great Pause' while we figure out to overcome this global pandemic. There is no longer an economic status quo available to us. What does this mean in practice?
